A government oversight report revealed that more than 50 percent of the capital of Al-Durra Labor Recruitment Company since it has lost abouty 1.518 million dinars, which means the erosion of its capital in a bog way.
The local company specializing in the recruitment of domestic workers was established in October 2016 with a paid-up capital of 3 million dinars, and several government institutions contribute to it, including the Kuwait Investment Authority, the Public Institution for Social Security (PIFSS), the Public Authority for Minors’ Affairs, and Kuwait Airways (10 percent each party) and the Union of Cooperative Societies 60 percent.
This was done for the company to carry out all the work of recruiting workers inside Kuwait, providing family care services, training workers in specialized centers, and providing workers with a nominal profit and competitive prices to the current prices provided by the labor offices in Kuwait.
In its opinion the Kuwait Investment Authority said the establishment of a government domestic labor recruitment company did not include reference to the economic feasibility study of establishing such a company and the extent to which it is possible to create added value for this activity. There is no doubt that professional rules require the existence of such studies as a prerequisite for its establishment.
The most important reasons for the loss of the company include”
— Distributing annual bonuses to the members of the Board of Directors, despite achieving continuous losses since its inception.
— The company’s lack of success in the desired goal of its establishment, which is to provide labor in Kuwait at competitive prices.
— The excesses of the former chairman of the board of directors of the company resulted in damage to the company’s capital and incurring unjustified costs. One of those abuses was the chairman of the board renting a car for his personal use.
— Transgressions in the appointment procedures and contracts by the former president of the company, as 23 employment contracts were drawn up, the exact nature of which was not known, and the experiences of the appointed employees were not clarified, and without a statement of their job title, without making an estimate of the company’s labor needs.
— Corona pandemic and its impact on the labor recruitment process.
The report indicated that the employment contracts that were concluded during the era of the former president were referred by the company’s board of directors to the Public Prosecution for investigation.
With regard to the value of renting a car for the personal use of the Chairman of the Board of Directors, the Board of Directors filed a civil lawsuit in court to recover the value of the sums paid for the rental from the former Chairman.